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Highlights
- Control Bionics sees rising NDIS approvals after delays.
- New leasing programs launched for communication devices in Australia.
- Rights issue underway to support product commercialization and expansion.
After experiencing industry-wide delays in NDIS approvals since late 2023, Control Bionics (ASX:CBL) has seen a significant turnaround over the past two months. The company reported receiving approvals totaling nearly $400,000 during this period, more than it had secured from the NDIS in the previous five months combined. This surge in approvals reflects the agency’s growing momentum and improved processing times.
Control Bionics noted that these approvals would be recognized as revenue once the devices are shipped to customers. The company’s pipeline remains strong, with nearly $1 million in NDIS applications either awaiting approval or expected to be submitted soon. The company expressed confidence in continued approvals in the coming months, bolstered by increased engagement with the NDIS.
To help individuals with neurodegenerative conditions, Control Bionics recently introduced a long-term leasing program for its Trilogy system in Australia. This initiative allows customers to lease the device for 12 months at a lower cost compared to purchasing it outright, while the equipment remains owned by the company. The program has been well received, with the NDIS already approving the first application under this new offering. Control Bionics is also preparing to launch a similar leasing program for its NeuroNode product, expanding funding options for its customers.
The company’s NeuroNode device, which provides non-invasive communication and environmental control capabilities for people with conditions such as ALS/MND, cerebral palsy, and traumatic brain injuries, continues to gain traction. In September, Control Bionics signed an exclusive distribution agreement with UK-based Smart Box Ltd, enabling the sale of NeuroNode in the UK and Ireland.
In parallel, Control Bionics is conducting a pro rata non-renounceable rights issue to raise up to $2.1 million. The rights issue offers shareholders one new share for every seven held, with an additional option for every two shares. The funds will support the commercialisation of the company’s NeuroStrip, the launch of DROVE, and the expansion of its NeuroNode strategy. Control Bionics has also successfully raised $1.15 million through a share placement, pending shareholder approval at its upcoming AGM in October.
In a further financial boost, the company recently received a research and development tax incentive of $736,794 for FY24. Part of the funds was used to repay a debt facility, with a remaining balance of $288,587 available for future use.
Control Bionics’ continued innovation, alongside its growing success with NDIS approvals and financial backing, positions the company for further growth in the assistive technology sector.
